Prairie Operating Co. Announces Second Quarter 2025 Results

• Total Revenue of $68.1 million, an increase of approximately 400% quarter-over-quarter
• Net Income of $35.7 million, an increase of over 500% quarter-over-quarter
• Over 540% increase in quarterly production to a total of 21,052 Boe/d per day (50% oil)
• Record Adjusted EBITDA of $38.6 million, an increase of over 600% quarter-over-quarter

HOUSTON, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”), an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the quarter ended June 30, 2025.

RECENT KEY HIGHLIGHTS

• Total revenue of $68.1 million, an increase of approximately 400% quarter-over-quarter.
• Record total production of 21,052 barrels of oil equivalent per day (“Boe/d”) (approximately 50% oil), an increase of approximately 540% quarter-over-quarter.
• Net income attributable to common stockholders of $48.5 million, or $1.04 basic earnings per share.
• Adjusted EBITDA⁽¹⁾ of $38.6 million, an increase of over 600% quarter-over-quarter.
• Acquired over $600.0 million of producing oil and gas assets.
• Initiated hedging program, securing favorable commodity pricing through 2028.
• Amended our Credit Facility Agreement with Citibank, which among other things, brought additional banks into the syndicate, and re-affirmed the borrowing base to $475.0 million.
  

_{⁽¹⁾ Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.}

Edward Kovalik, Chairman and Chief Executive Officer, commented:

“The second quarter highlighted our tremendous growth rate. We delivered record production, achieved new highs in adjusted EBITDA, and closed our third strategic acquisition in under a year — further solidifying our position as an oil-weighted consolidator in the DJ Basin.”

“Through disciplined capital allocation, operational control, and technical execution, we’ve built a platform that is well-positioned to generate sustainable returns. Our recent acquisitions — all sourced off-market and executed at compelling valuations — have expanded our inventory depth, improved capital efficiency, and created a clear path for continued growth.”

“We also completed the integration of the Bayswater assets acquired earlier this year, increased the size of our team from 20 to 59 employees, increased our portfolio of operated wells from 34 to over 360, and implemented robust internal systems for accounting, land administration, and production optimization.”  

“As a result, we’ve laid the groundwork for lower cost realizations in the third quarter and beyond, as we continue to ramp production through development of our drilling inventory, and save costs previously associated with outsourced consultant expenses.”

SECOND QUARTER RESULTS SUMMARY

• Revenue of $68.1 million, driven by realized prices (excluding hedges) of $65.66 per barrel for oil, $8.70 per barrel for NGLs, and $1.80 per thousand cubic feet (“Mcf”) for natural gas.
• Net income attributable to common stockholders of $48.5 million, or $1.04 basic earnings per share.
• Adjusted EBITDA ⁽¹⁾ of $38.6 million, an increase of over 600% quarter-over-quarter.
• Capital expenditures incurred of $56.6 million.
• Net cash provided by operating activities of $9.7 million. 
  

_{⁽¹⁾ Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.}

Greg Patton, Executive Vice President and Chief Financial Officer, added:

"Our second quarter results highlight the steps we’ve taken to strengthen Prairie’s financial and operating foundation. Our ability to stand up a rig, kick off a continuous frac program, transition the operations of acquired assets, and implement all new accounting and productions systems, is a true testament to our teams’ abilities.”

“To date, we have grown EBITDA more than six-fold, expanded our credit facility, and closed over $600.0 million in accretive acquisitions. We also broadened analyst coverage, further enhancing our visibility in the market. With leverage of approximately 1x, enhanced liquidity, and attractive pricing locked in through 2028, Prairie is well positioned to generate cash flow and pursue strategic growth opportunities. We are looking forward to optimizing our cost structures, which we believe will translate directly into stronger margins, higher returns, and additional free cash flow."

Operations Update

The second quarter reflected Prairie’s continued operational momentum, with strong execution across drilling, completions, and innovative well designs that are helping unlock additional value across our DJ Basin footprint. We drilled 18 and completed 9 wells during the quarter, remaining on track to meet or exceed our full-year turn-in-line (“TIL”) target. Average spud-to-total-depth times improved to just 5.3 days, driven by field execution and optimized rig operations. Overall, well costs remained within 5% of AFE, with our most recent pad averaging approximately $5.6 million per well. We continue work on driving our 2-mile well AFE down towards $5 million per well.

A key highlight for the quarter was the successful execution of the 11-well Rusch pad in Weld County, which includes eight Niobrara wells and three Codell wells, all drilled as two-mile laterals. Eight of the wells were drilled in a single run using Schlumberger’s Neosteer rotary steerable system, achieving average rates of penetration exceeding 450 feet per hour. The Rusch pad was drilled on time and within budget, with first production expected early in the third quarter.

Prairie also advanced its position as a technical leader in the DJ Basin with the implementation of U-shaped lateral designs — a next-generation well architecture that enables extended lateral lengths within constrained lease boundaries. Four of the seven wells on the Noble pad incorporated this technique to target multiple stacked zones while maximizing drainage and minimizing surface impact. Precision Drilling and Ensign contributed to efficient surface hole and production interval drilling, with all seven wells progressing on schedule.

In addition to design and drilling innovation, Prairie continued aligning operations with cost efficiency and sustainability through the deployment of an electric frac fleet. This fleet significantly reduced emissions and completion costs while completing the nine-well Opal-Coalbank pad, which included legacy DUCs acquired in the Bayswater transaction. Our first zipper frac on this pad achieved excellent efficiency — averaging 14 stages per day and peaking at 18 — while sustaining 22 hours of daily pumping time. Early pressure data suggests strong reservoir communication, and all nine wells flowed oil within the first week of flowback, supported by tubing pressures in excess of 1,500 psi.

In total, Prairie turned 17 wells to sales in the first half of 2025 and now operates over 360 wells. As part of our ongoing production optimization strategy, we installed plunger lift systems on 30 wells during the quarter, with another 25 to 30 wells currently being evaluated for Q3 implementation. Additional value creation came through three high-return workovers brought back online in June and July.

Altogether, Prairie’s operational performance in the second quarter underscores our focus on efficiency, innovation, and disciplined capital deployment. We remain committed to maximizing asset value, delivering returns-driven growth, and maintaining the highest standards of safety and environmental stewardship.

SECOND QUARTER 2025 RESULTS

Key Financial Highlights

Revenue and Production

Revenue for the second quarter of 2025 was $68.1 million, $57.9 million related to oil. Production for the second quarter of 2025 was 21,052 Boe/d and was comprised of approximately 50% oil.

 Operating Costs

  
Capital Expenditures and Acquisitions

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2025, we had approximately $98.7 million of liquidity, consisting of $88.0 million of borrowings available under our Credit Facility and $10.7 million in unrestricted cash. As of June 30, 2025, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.        

2025 UPDATED GUIDANCE

In line with analyst consensus, Prairie’s full year guidance for 2025 is:

• Average Daily Production: 24,000 – 26,000 BOEPD.
• Capital Expenditures (Capex): $260.0 million - $280.0 million.
• Adjusted EBITDA⁽¹⁾: Expected to range between $240.0 million and $260.0 million.
  

_{⁽¹⁾ Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.}

Guidance reflects the timing of March 26, 2025 closing the Bayswater Acquisition and is based on an active hedging program with an average working interest of 75% or greater and a commodity price deck of $60.00 – $64.00 per Bbl for oil and $4.00 per Mcf for gas.

HEDGES

Following the close of the Bayswater Acquisition, we executed a portfolio of hedges covering approximately 85% of our current daily production, inclusive of volumes from the Bayswater Acquisition assets.

The following table reflects contracted volumes and weighted average prices we will receive under the terms of our derivative contracts as of June 30, 2025: 

Non-GAAP Financial Measures

This press release contains Adjusted EBITDA which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.
  
Adjusted EBITDA is derived from net income (loss) from continuing operations and is adjusted for income tax expense, depreciation, depletion, and amortization, accretion of asset retirement obligations, non-cash stock-based compensation, interest expense (income), net, non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants, and unrealized gain on derivatives, all as applicable. We adjust net income (loss) from continuing operations for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income calculated in accordance with GAAP or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

The following table presents the reconciliation of Net income (loss) from continuing operations to Adjusted EBITDA for the periods indicated:

The following table presents the reconciliation of our expected full year 2025 Net income to our expected full year 2025 Adjusted EBITDA:

Cautionary Statement about Forward-Looking Statements

The information included in this press release and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Press release, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

These risks are not exhaustive. Other sections of this press release could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our SEC filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward-looking statements in this press release should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

All forward-looking statements, expressed or implied, included in this Press release are expressly qualified in their entirety by this cautionary statement.

About Prairie Operating Co.

Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil, natural gas, and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation.

More information about the Company can be found at www.prairieopco.com.

Investor Relations Contact:

Wobbe Ploegsma
info@prairieopco.com
832.274.3449

Supplemental Disclosures of Cash Flow Information

The following table presents non–cash investing and financing activities for the periods presented: